FBM30 1575.71 +11.69 points (+0.75%) Volume 1,273mil Value 1,845mil
1) KLCI was firmer today following positive US economic data overnight while most of the largest US banks passed their annual stress test boosting investors’ confidence and risk appetite. Regionals however were weaker in the afternoon session when China Premier Wen Jia Bao doused expectations of any near term easing of measures in the property sectors as house prices are far from returning to reasonable levels. Index pared its gain to a low of 1568.41pts (+4.39pts) before late surge in buying interest of core blues (PETGAS+3%, CIMB+2%, TENAGA+2.3%) saw index jump 4pts at close to end at day’s high. Broader market turned positive with advancers outpacing decliners 444:334. Futures closed 1576.5 (1 point premium).
2) Heavyweights: CIMB+1.93% RM7.40, TENAGA+2.37% RM6.47, AXIATA+1.2% RM5.12, PETGAS+2.91% RM16.98, PCHEM+1.19% RM6.78, YTL+2.98% RM1.73, GENTING+0.74% RM10.86, DIGI-1.25% RM3.95
3) DBT: CME 16.6mil @ RM0.075 (4% PUC), WINSUN 1.9mil @ RM0.145
4) Situationals:
YTLCorp +3% RM1.73 : The counter experienced a significant bounce today on the back of the further share buy back by the company. For the month of March alone, the company has bought back 30.99m shares.
5) DRBHCOM-0.75% RM2.64
At an EGM today, DRBHCOM shareholders approved plans to buy 43% stake in Proton from Khazanah for RM1.29bn or RM5.50/share. DRB already holds 7.3%, bought from the open market in January 2012 at between RM5.40-RM5.47. With an effective 50.01%, it is now obliged to make a mandatory general offer for the rest of Proton shares not owned by the group.
DRB’s MD was quoted as saying that it he was evaluating the current Lotus business transformation plans and could eventually change the business approach, change management or even sell their stake in Lotus. He also clarified that they have not been approached by OEMs on the use of Proton’s plants.
Immediate event that investors are watching is the expected launch of the new Proton model, P3-2A for the C segment. This model is suppose to garner higher margins for the group.
6) Market – Volatility expected to remain as investors remain cautious, selling into bounces, unconvinced of the global recovery. The rebound by the KLCI today, back above the 1567 levels however indicate that short term uptrend remains intact with a prudent stop loss set at the 1550 levels should any unexpected negative news emerge.
